[Previous entry: "Morales gives longtime outsiders of Bolivia a place in Cabinet"] [Next entry: "Things Fall Apart"]

01/29/2006:

"Chechens freeze as gas is cut off"

Gas supplies to parts of Chechnya's capital Grozny have been cut off after an accident damaged a gas pipeline running through the Russian region.

The accident came shortly before its energy-starved neighbour Georgia agreed a deal with Iran to get extra gas.

Most of Georgia still lacks power and heating after snow and wind knocked down its main power line and explosions ruptured a key Russian gas pipeline.

Russia and its neighbours are suffering from extreme cold this winter.

In Chechnya, the emergency situations ministry and gas utillity experts are searching for the cause of the pipeline rupture, which happened near the city of Gudermes, a ministry official said.

Chechen rebels have been blamed for previous damage to pipelines, including the explosions which cut off Georgia's gas last Sunday.

The BBC's Natalia Antelava in Tbilisi says Georgians are trying their best to keep warm, but wood and kerosene are all most people have.
bbc.co.uk


'Lessons' for EU from gas crisis
The European Union has expressed relief that a dispute threatening gas supplies from Russia is over, but said lessons must be learned from the crisis.

Russia has agreed to start pumping gas to Ukraine again, after turning off the taps in a row over prices.

...Andris Piebalgs had been leading an emergency meeting of EU gas experts when news of the deal came through from Moscow.

Under the five-year agreement, Ukraine will buy Russian gas, mixed with Central Asian gas, for $95 (£54) per 1,000 cubic metres on average.

Russia halted gas supplies to Ukraine on 1 January, after Kiev rejected a price rise that would have taken the cost of gas from $50 to $230.

Austrian Energy Minister Martin Bartenstein told journalists in Brussels that Russian gas would remain the backbone of the European energy supply mix.

But he said: "We have to think about energy supply security in general, gas supply security... and we have to learn the lessons."

He added that a planned pipeline to deliver Caspian gas to Europe via Turkey could help to diversify the EU's sources of gas.

Russia supplies about a quarter of Western Europe's needs, but this proportion is due to rise dramatically in future, under current plans.


Gazprom's global ambitions
"We would like to transform our company from being the world's leading gas company into a world leading energy company," says Mr Medvedev.

Not only are the world's two largest energy markets - China and the US - on the radar of the state-controlled giant, which is 51% owned by the government.

It also has firm ambitions to raise its presence in European energy markets, and it is preparing to expand its production facilities with the view to become a truly global player.

Gazprom is also keen to allow foreign investors to buy its shares, following stock market liberalisation plans recently cleared by the Duma.

"We will target market capitalisation of around $250bn-$300bn in the next 5 to 7 years."

Gazprom, which is already the world's largest gas producer, is about to start pumping gas from the hitherto unexploited Russian parts of the Barents Sea.

...The Shtokman field is one of Gazprom's most significant projects in the next five years," says Mr Medvedev.

"It is a unique field, with unique reserves.

"If all goes according to plan, the field should be ready by 2010."

Gas from the field is set to be pumped through four pipelines to liquefied natural gas, or LNG, processing plants near Murmansk.

From there, much of the LNG is to be shipped in giant tankers to the North American markets, which can be reached in just over a week.

"It will enable Gazprom to be a major player in the LNG market in the USA," says Mr Medvedev, adding that it is already shipping LNG to North America, though it hopes the route from the Barents Sea should help reduce costs compared with current shipping routes.


Pakistan's battle over Balochistan
...No-one seems to know exactly how many civilians have died in helicopter raids on suspected militant camps or in the numerous rocket attacks on soldiers' camps.

In the words of one analyst, it's an undeclared war in which neither side is observing the rules.

So what on earth is going on in Balochistan, which is regarded as the poorest and most backward of Pakistan's four provinces?

With about six million inhabitants, Pakistan's biggest province has less than half the population of the port city of Karachi.

In mineral resources, however, it is said to be the richest province and is a major supplier of natural gas to the country.

With the government now planning to construct a deep sea port at Gwadar and a road link with Afghanistan and central Asia, Balochistan has acquired a new significance - both for Pakistan and other regional players.